Dubai agrees $400 min wage for Filipino workers

Recruitment agencies in Dubai have agreed on a US $400 per month minimum wage for domestic workers from the Philippines, it was reported, after a similar deal was struck in Saudi Arabia.

The announcement follows a joint agreement between placement agencies in the Philippines and the Gulf emirate, GMA News said, citing Filipino Labour Secretary Rosalinda Baldoz.

"I am happy to note that the new SEC (Standard Employment Contract) for HSWs (household service workers) to be deployed to Saudi Arabia has motivated other Middle East countries to follow suit and also formulate their own modes of giving our HSWs the kind of protection they truly deserve," Baldoz was quoted as saying by the website.

In addition to a minimum salary, the agreement also aims to eradicate the practice of agencies charging Philippines nationals excessive fees when finding them employment in Dubai.

Approximately 400,000 Filipinos currently work in Dubai across positions including household helpers, labourers, technicians and retail salespeople. A further 1.2m or so Philippines nationals work in Saudi Arabia.

It is estimated that around 10m Philippines citizens work outside of their home country and the remittances they send back to that country are a significant contributor to its economy.

The decision to implement a minimum wage in the two Gulf states comes on the back of a diplomatic spat between Saudi Arabia and the Philippines, which saw the conservative Sunni kingdom temporarily cease issuing work visas for Filipinos after that country’s government attempted to impose stricter conditions on Saudi employers.